By Andrea Heisinger
New York, Feb. 12 - Arrow Electronics, Inc. priced an upsized $600 million of senior notes (Baa3/BBB-/BBB-) in two maturities on Tuesday, a market source said.
The size was increased from $500 million, the source said.
The sale included $300 million of 3% five-year notes priced at 99.481 to yield 3.112% with a spread of Treasuries plus 225 basis points. There is a make-whole call at Treasuries plus 35 bps.
A $300 million tranche of 4.5% 10-year notes sold at 99.202 to yield 4.6% with a spread of 262.5 bps over Treasuries. The tranche has a make-whole call at Treasuries plus 40 bps until Dec. 1, 2022, with a par call after that date.
There is a change-of-control put at 101%.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the active bookrunners. Goldman Sachs & Co. was a passive bookrunner.
Proceeds will be used to refinance outstanding 6.875% notes due July 1, 2013 and for other general corporate purposes, including acquisitions.
Arrow last tapped the U.S. bond market in a $500 million sale in two tranches on Oct. 29, 2010. The trade included a 3.375% five-year note priced at 230 bps over Treasuries and a 5.125% 10-year note sold at Treasuries plus 255 bps.
The maker of electronic components and enterprise computing solutions is based in Melville, N.Y.
| Issuer: | Arrow Electronics, Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million, increased from $500 million
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC (active), Goldman Sachs & Co. (passive)
|
| Senior co-managers: | BNP Paribas Securities Corp., Wells Fargo Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 20
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | March 1, 2018
|
| Coupon: | 3%
|
| Price: | 99.481
|
| Yield: | 3.112%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | March 1, 2023
|
| Coupon: | 4.5%
|
| Price: | 99.202
|
| Yield: | 4.6%
|
| Spread: | Treasuries plus 262.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps to Dec. 1, 2022, par call after
|
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